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letter of credit - which position management procedure is the relevant one?

peter_langner
Active Contributor
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292

Dear all,

I want to activate letter of credit procedure  (product type 85A) in my S/4HANA 1909 system. In the standard customizing the link to accounting needs to be customized. When it comes to the assignment of the position management procedure I am unsecure, which is the right one to take.

In Customizing under Treasury and Risk Management > Transaction Manager > General Settings > Accounting > Settings for Position Management > Assign Position Management Procedure

I have the following options:

1000 SE/Loan: Mark-to-Market (P/L) / Amortization (SAC Net)
1001 Sec./Loan: MtM (P/L)/Amort. SAC Net Separate Position Costs
1010 SE/LO: Mark-to-Market (OCI) / Amortization (SAC Gross)
1020 German HGB: Bond Issue
1030 IAS/IFRS/US GAAP: Bond Issue
2000 SE/LO/MM: Write up to Purchase Value (Without Amort.)
2500 Money Market: Mark-to-Market (FX / P/L)
2501 Money Market: Mark-to-Market (FX / P/L) (Asset)
2502 Money Market: Mark-to-Market (FX / P/L) (Liability)
2600 Money Market: Mark-to-Market ("Security", FX, P/L)
2700 Facility: No Valuation
3000 Derivatives: Hedging Instr., Hedge Acctng (Forex & Sec.Val.)
3001 Forex Trans.: Hedging Instr., Hedge Acctng (Mark-to-Market)
3002 Money Market Transactions: Underlying, Hedge Accounting
3003 Money Market Transactions: Hedging Instr., Hedge Acctng
3004 Forex Trans.: Hedging Instr., Hedge Acctg (Spot/Spot & Swap)
3100 Forward Securities Transactions: Mark-to-Market
3500 Forward Exchange Transactions: Mark-to-Market
3600
4000 Forward Exchange Transactions: Spot/Spot
5000 Index-Linked Bonds: Mark-to-Market (P/L) / Amort. (SAC Net)
6000 Listed Options and Futures: Mark-to-Market
7000 OTC Derivatives: Mark-to-Market
7100 OTC Options: Mark-to-Market (2-Step/OCI)
7200 OTC Options: Mark-to-Market (2-Step/OCI) Transfer Underlying
7300 OTC Derivatives: No Valuation
7315 FLP with Physical Delivery-HGB (Write-up to Purchase Value)

7316 FLP with Physical Delivery-IFRS (Mark to Market)
7317 FLP with no valuation
7400 OTC Deriv.: Mark-to-Market (Asset/Liab. Balance Sheet Accts)
7500 OTC Deriv.: Mark-to-Market (Asset/Liab. Balance Sheet Accts)
8000 Standard Repo
9979 -------Securities/Loans - IAS (Templates)-------
9980 IAS/AFS: Amort. SAC Net / FX Val. (P/L), Sec.Val. (Equ.Cap.)
9981 IAS/AFS: FX Val.(Equity Cap.), Sec.Val.(Equity Cap.)
9983 IAS/TRA: No Amort. / FX (P/L), Security (P/L)
9984 IAS/HTM: Amort. SAC Net / FX Val. Only (P/L)
9985 IAS/HTM: No Amort. / FX Val. Only (P/L)
9986 IAS/AFS: Amort. Const. Eff.Int.Rate /Security (OCI)/FX (P/L)
9989 ------ Securities/Loans - US GAAP (Templates) -------
9990 US/AFS: Amort.SAC Gross / FX Val.(Eq.Cap), Sec.Val.(Equ.Cap)
9991 US/AFS: No Amort. / FX Val. (Equ.Cap), Sec. Val. (Equ.Cap)
9992 US/TRA: Amort. SAC Gross / FX (Equity Cap.), Security (P/L)
9993 US/TRA: No Amort. / FX (Equity Cap.), Security (P/L)
9994 US/HTM: Amort. SAC Gross / FX Val. Only (Equity Cap.)
9995 US/HTM: No Amort. / FX Val. Only (Equity Cap.)
9996 US/AFS: Amort with Delayed Effect.Int./ Sec.(OCI)/Forex(P/L)
9997 US/FASB91: Retrospective Amortization ABS/MBS

Which one is the procedure for letter of credit? How have you solved this in your system?

Thank you for your help,

Peter

prasad_avp
Employee
Employee
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.

prasad_avp
Employee
Employee
0 Kudos

.

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Answers (1)

Answers (1)

prasad_avp
Employee
Employee
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Hi, you can use below standard PMP as reference and copy to your own and remove valuation steps from it. it should be fine.

2500 Money Market: Mark-to-Market (FX / P/L)